Emerging stocks hit highest in nearly a decade

Emerging market stocks have surged 5 percent so far this year, helped by oil trading near US$70 a barrel, a soft dollar and a pick-up in global economic growth, while US inflation remains subdued, tempering rate rise expectations. MSCI’s benchmark emerging equities index gained 0.7 percent after Asian shares reached another record high, as investors continued to pile into riskier assets.Among the day’s big movers were Hong Kong, up 1.8 percent to a record closing high, with Tencent jumping over 2 percent. Chinese mainland shares rose 0.8 percent, closing at a 30-month high, while index heavyweight the Republic of Korea gained 0.7 percent. “We are seeing a lot of inflows to the EM asset class while the dollar has got weaker and weaker, which is supportive for emerging markets as a whole,” said Trieu Pham, a strategist at MUFG. “So far, there has been nothing to change the (bullish) view on EM.” In another sign of the sector’s health, emerging markets fund manager Ashmore posted a 7 percent rise in second- quarter assets under management, boosted by net inflows and investment gains. The rally extended into some emerging European markets with Hungarian shares up 0.6 percent and Polish stocks up 0.3 percent. With the dollar index down 0.4 percent to its lowest in more than three years, some currencies also gained. Amongst the biggest gainers was the South African rand which rose as much as 0.8 percent, breaking through a technical barrier to hit a 2 1/2-year high against the… [Read full story]

Advertisements



Link http://news.c10mt.com/search/label/vietnambreakingnews and http://news.c10mt.com


Links Topics : http://news.c10mt.com/2018/01/emerging-stocks-hit-highest-in-nearly.html